Skip to content
Business — Finance — Industry — Saudi — Art — News — Arabia — East

Proposed innovative strategy for dismantling secrecy trade

Saudi Scholar Suggests Relaxing Investment Regulations to Combat Illegitimate Businesses in Saudi Arabia Worth Over SR236 Billion. These businesses, predominantly operating with support from Saudi nationals and managed by expats, need time to legitimize their status, according to Ayman Fadil,...

,   and  Administrator
2 min read
Saudi Scholar Proposes Measures to Address Illegally Concealed Commerce Valued at Approx. SR236...
Saudi Scholar Proposes Measures to Address Illegally Concealed Commerce Valued at Approx. SR236 Billion, Suggesting a Relaxation of Foreign Investment Policies and Ample Time for Such Businesses, Run by Expats with Local Support, to Legally Transform. Ayman Fadil, Dean, Offers Insight.

Proposed innovative strategy for dismantling secrecy trade

Unleashing Investment and Eradicating Illegals: Saudi's New Strategy

Saudi Arabia is shaking things up with a fresh plan to boost foreign investment, particularly in the Small and Medium Enterprises (SME) sector, while simultaneously combating hidden, illicit businesses worth around SR236 billion.

Dean Ayman Fadil, of King Abdulaziz University's Faculty of Economics and Administration, suggests a range of proposals, including relaxing foreign investment regulations and establishing a specialized agency to target businesses masquerading as locals.

Prince Saud bin Naif, Eastern Province's governor, kicked off an initiative calling for improvements in the Kingdom's investment climate and increased domestic investment in the trade sector. The event highlighted the problem of counterfeit goods, leading to an annual loss of SR16 billion, as mentioned by Abdul Rahman Al-Rashid, president of the Asharqia Chamber.

In a bid to tackle the issue, the Prince Mishaal bin Majed Chair for Conducting Studies on Cover-up Businesses aims to develop effective solutions, as mentioned by the dean during a forum presentation. Under a 2004 law, foreigners are prohibited from engaging in business activities without a license, with exceptions made for GCC citizens who are treated equally to Saudi nationals.

Interestingly, the Saudi government's broader strategy for combating financial misconduct involves enhancing transparency and accountability within the financial sector, as part of the financial sector development program [1]. This program aims to make the financial industry more open and supportive of international investors, helping to increase foreign participation in the capital markets [1]. In addition, Vision 2030, a key initiative, focuses on diversifying the economy and creating a conducive environment for both local and international investors [1][4].

To promote SME growth, initiatives spearheaded by the General Authority for Small and Medium Enterprises (Monsha'at) aim to increase financing opportunities and strengthen the entrepreneurship culture [5]. Nearly $1 trillion is being invested in Riyadh over the next seven years, which could benefit SMEs with a focus on sustainability, innovation, and creativity [5]. Moreover, efforts like SAB's commitment of SR34 billion towards sustainable financing activities by 2025 support initiatives that align with broader economic diversification goals [3].

Visionary Mohammed Ali, managing director of Jeddah National Hospital, encourages authorities to permit foreigners to invest in SMEs in partnership with citizens, as this could help address unemployment among Saudis and strengthen relations between locals and foreigners.

  1. The Saudi government is focusing on improving the investment climate, particularly in the Small and Medium Enterprises (SME) sector, as part of their strategy to combat hidden, illicit businesses worth around SR236 billion.
  2. Dean Ayman Fadil suggests relaxing foreign investment regulations and establishing a specialized agency to target businesses masquerading as locals, while Prince Saud bin Naif calls for improvements in the Kingdom's investment climate.
  3. The Saudi government is enhancing transparency and accountability within the financial sector as part of their financial sector development program, aiming to make the financial industry more open and supportive of international investors.
  4. Vision 2030, a key initiative, focuses on diversifying the economy and creating a conducive environment for both local and international investors, which could attract nearly $1 trillion of investment in Riyadh over the next seven years.

Read also:

    Related

    Latest